Inflation or recession?

The Fed has finally acknowledged that it will have to take its rate hiking decisions meeting by meeting and as inflation in parts of the world seems to be rolling over, it’s time to question whether we should be worried about inflation or recession. The projected Fed Funds in Dec 2023 is revealing. The so-called Fed Dot Plot has it at 3.75%, while the bond market has it at 2.84%. The projected Fed Funds rate in Dec 2024 according to the Dot Plot is 3.38%, while the bond market has it 2.49%. That’s a historically huge 100 bps discrepancy between where the FOMC & the bond market believe Fed Funds will be. Guests: Brian Kantor, Head of the research institute: Investec Wealth & Investment Hugo Pienaar, Chief Economist: Bureau of Economic Research